WT/TPR/S/247/Rev.1 Trade Policy Review 
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 V. AID FOR TRADE 
(1) MAINSTREAMING TRADE INTO THE NATIONAL DEVELOPMENT STRATEGY  
(i) Mainstreaming at the policy level 
1. Nigeria's Vision 20:2020 provides the framewo rk for the national development strategy, 
which focuses on the diversification of the economy away from oil.  The objective of Vision 20:2020 
is to place Nigeria among the top 20 economies in the world by the year 2020.  Among the core 
elements of the strategy is the modernization of  agriculture, rehabilitation of infrastructure, and 
development of the power sector.   
2. Vision 20:2020 is being implemented through th ree medium-term development plans. In the 
first, the National Implementation Plan (2010-2013) , four thematic areas were identified: physical 
infrastructure; productive sector; human developm ent; and the development of a knowledge-based 
economy.  The productive sector thematic area c overs seven subsectors:  agriculture and food 
security; oil and gas; manufacturing; small and medium enterprises; solid mineral and steel development; culture and tourism;  and trade and commerce. These subsectors have been identified as 
drivers of GDP growth of 11% per year for the 2010-13 period as envisaged by the Plan.
1 
3. Prior to Vision 20:2020, trade had been rec ognized in the National Economic Empowerment 
and Development Strategy (NEEDS) as  critical for economic development.2  Under Vision 20:2020, 
various strategies and initiatives have been identifie d to support the mainstreaming of trade into the 
national development strategy.  The overarching ai ms have been to support the growth of non-oil 
exports, to increase utilization of preferential trade arrangements and to  strengthen Nigeria's 
participation in international trade negotiations.  Specific sectoral priorities and targets have been 
identified in the National Implementation Plan and, to a large extent, donor support has been aligned 
to these priorities. 
(ii) Mainstreaming at the government-donor partnership level 
4. Few bilateral donor agencies operate in Nigeri a.  The main donors are the World Bank, the 
United States Agency for International Development (USAID), the U.K. Department for International 
Development (DFID), the African Development Bank  (AfDB) and the European Union.  These five 
donors account for over 80% of annual development assistance to Nigeria.3  In 2009, the World Bank, 
USAID, DFID and the AfDB agreed to a common si ngle Country Partnership Strategy (CPS) in order 
to better coordinate their activities and to increase th e effectiveness of their support.  There is also 
close coordination with other donors, includi ng the Canadian Development Agencies (CIDA), 
Japanese International Co-operation Agency (JIC A), the French Agency for International Co-
                                                      
1 Government of Nigeria (2009). 
2 During 2004-07, Nigeria's national development strategy was anchored on the National Economic 
Empowerment and Development Strategy (NEEDS), which focused on three priority areas: (i) improved 
services delivery for human development, (ii) improved environment and services for non-oil growth, and (iii) enhanced transparency and accountability for be tter governance. Based on the NEEDS framework, the 
Government introduced the Seven-Point Agenda in 2007, focusing on: (i) energy emergency; (ii) agriculture and 
food security; (iii) wealth cr eation and poverty alleviation; (iv) land re form; (v) security of lives and property; 
(vi) human capital development, including compulsory education for children; and (vii) transport revolution, 
including improved mass transit. 
3 World Bank (2009a). Nigeria WT/TPR/S/247/Rev.1 
 Page 77 
 
 
 operation, and the United Nations, some of which ar e expected to join the partnership during the 
period of implementation. 
5. Main focuses of the Country Partnership Strategy are:  (i) improving governance, 
(ii) maintaining non-oil growth, and (iii) pr omoting human development, in line with the 
Government's national development strategy.  Prior to the 2009 Country Partnership Strategy, some 
donors had directed their assistance to a selected number of states in order to avoid spreading 
assistance too thinly and because of issues related to  poor governance in some areas.  However, the 
new approach was to support more states without particular attention to specific areas.4 
6. Within the Government, the agencies with st atutory responsibility for the coordination of 
official development assistance are the National Planning Commission (NPC) and the Federal 
Ministry of Finance. The NPC coordinates all grants and technical assistance, while the Federal Ministry of Finance is responsible fo r coordinating all concessionary loans.  
(2) A
ID-FOR-TRADE NEEDS  
7. One of the main impediments to trade and economic growth in Nigeria has been poor 
infrastructure, including transport,  power, and telecommunications (see Chapter IV), and this has been 
recognized in Nigeria's Vision 20:2020.  Power ou tages, poor quality of supply, and low access to 
electricity are continuing problems and the deliver y of adequate and reliable power is one of the 
priority areas in the Vision 20:2020.  The carriage of goods and people relies almost exclusively on 
road transport but the network is in poor condition due to poor maintenance. The Federal Government 
is making efforts to encourage other means of transport and addressing the needs of freight and 
logistics, such as linking Nigerian ports and majo r airport to railways.  Considerable progress has 
been made over the past few years in improving telecommunications, particularly mobile phones, but more needs to be done, especially for broadband communications. 
8. Trade facilitation has been ranked as one of the highest priorities and the Government 
identified needs relating to border administration in  order to improve the operational capacity of the 
Nigeria Customs Service;  these include training a nd capacity building for customs officers and other 
relevant trade facilitation agencies, particularly on valuation, control and release of goods, and risk 
management. An inter-ministerial Trade Facilitation Task Force
5 has been set up and serves as the 
focal point for trade facilitation activities and provides a coordination role. 
9. Nigeria also faces challenges related to poor quality of goods and services that do not meet 
international standards.  Compliance with interna tional standards has been difficult due to limited 
technical, human, and standards-related infrastructure.   National laboratories will have to be improved 
or in some cases built while the tr ade regulatory agencies, particular ly the Standards Organization of 
Nigeria (SON), also need to be upgraded in orde r to effectively monitor the standard of Nigerian 
products and to ensure that Nigerian goods meet in ternational market standards.  In this respect, 
several donors have been providing technical assistan ce and capacity building in the area of sanitary 
and phytosanitary (SPS) standards.  For exampl e, with support from the Standard and Trade 
Development Facility (STDF), Nigeria is benef iting from a regional project on SPS capacity building 
to mitigate the harmful effect of pesticide r esidues in cocoa and to maintain market access.6 
                                                      
4 World Bank (2009a). 
5 The Trade Facilitation Task Force is made up of 23 ministries, departments and agencies, private 
sector representatives, and development partners. 
6 ICCO (2010). WT/TPR/S/247/Rev.1 Trade Policy Review 
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 10. Nigeria presented its trade and productive-capacity-related needs at the August 2010 Session 
on Aid for Trade of the WTO Committee on Trade and Development.7  Seven areas for support were 
identified: (i) trade policy advocacy, (ii) trade polic y development, (iii) enhancing the competitiveness 
of supply capacity, (iv) compliance support infrastruct ure and services, (v) physical infrastructure, 
(vi) legal and regulatory framework, and (vii) tr ade facilitation and trade-related financial services. 
Following meetings with developm ent partners, including UNDP and ot her stakeholders, the Federal 
Government decided to regroup the seven categories of activities into three broad areas of support for 
trade and productive capacity in Nigeria: (i) mainst reaming trade into nationa l development strategies, 
(ii) enhancing trade competitiveness, and (iii) institu tional and human resource capacity development. 
(3) SPECIFIC TRADE -RELATED TECHNICAL ASSISTANCE NEEDS  
11. Nigeria faces challenges related to legal, re gulatory, and institutional reform. Support has 
been provided by donors, such as USAID, in certain areas, including customs reform and the 
development of new customs legislation.  However, difficulties remain with the review of legislation 
in other areas, such as TRIPS.  The authorities r ecognize that legislation will have to be accompanied 
by implement regulations and institutional refo rm, which will require support from development 
partners.  
12. At the international level, Nigeria would bene fit from assistance to strengthen the institutional 
and human capacity in the multilateral trading sy stem and to meet its obligations under the WTO 
Agreements, particularly Customs Valuation, Agricu lture, SPS, and TBT.  Nigeria also needs support 
in the dissemination of trade-related information, as indicated in its request to the WTO in 2009 to 
establish three reference centres.  Nigeria has not me t all its notification obligations in the WTO, and 
capacity building would help the responsible government agencies to prepare and analyse 
notifications. 
13. With respect to SPS issues, support is needed in  the area of notifications, to ensure that 
producers and exporters are informed of the SPS requi rements of their trading partners, and how to 
coordinate SPS-related activities at the national level, including the effective involvement of 
stakeholders.  At a national WTO training works hop on TBT, held on 26-29 July 2010, several needs 
were identified relating to harmonization, conf ormity assessment, transparency requirements and 
procedures.  
14. Nigeria undertook a trade facilitation needs assessment in 2008 with support from the WTO 
Trade Facilitation Trust Fund.  The exercise he lped Nigeria assess its technical assistance and 
capacity-building priorities if it were to implem ent WTO Members' proposals on issues related to 
freedom of transit, fees and formalities, and the publication and administration of trade regulations.  
The assessment also highlighted the need for more re gular consultations with stakeholders on trade 
facilitation to address issues that constrain Nigeri a’s trade.  Nigeria could request support from 
development partners to facilitate  discussions on how to implement some of the recommendations of 
the needs assessment.  In this regard, more financ ial and technical support could be provided to the 
Trade Facilitation Task Force. 
15. Nigeria has had particular problems with fully implementing the Customs Valuation 
Agreement.  Some training has been provided by  the WTO Secretariat to enhance the understanding 
by customs officers of the valuation control techniques, including post-import audit and risk management, as well as the establishment of a data-base.  However, more training is needed to enable 
customs officers to implement the Agreement eff ectively and to support the ongoing reforms being 
                                                      
7 WTO document WT/COMTD/AFT/W/23, 13 August 2010. Nigeria WT/TPR/S/247/Rev.1 
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 undertaken by the Nigerian Customs Service.  Th e Nigeria Customs Service is in the process of 
upgrading to ASYCUDA ++, which should improve cu stoms clearance procedures.  Support is also 
needed for improving the availability and use of  ICT through the electronic digitization and 
documentation of customs and ot her trade-related documents. 
16. As reported in the last TPR for Nigeria, the le gislation on intellectual property rights covers 
patents and industrial designs, trade marks, a nd copyright, but does not include protection for 
geographical indications, lay-out designs of integr ated circuits, undisclosed information or plant 
varieties, or for specified border measures.  T echnical cooperation may help Nigeria complete the 
coverage of its IP legislation to cover these areas and to update existing legislation where necessary.  
It could also improve the skills and knowledge of re gulatory officials, particularly in the area of IPR 
enforcement. 
(4) AID-FOR-TRADE SUPPORT TO NIGERIA  
17. Foreign aid represents less than 1% of GDP in  Nigeria.  According to the OECD Creditor 
Reporting System Database, Nigeria received a to tal of US$1.92 billion in aid for trade between 2002 
and 2008 (Table V.1).  Annual commitments av eraged US$189.743 million between 2002 and 2005, 
and support increased to US$728.74 million in 2008.  However, aid for trade accounted for 
approximately 18% of total sector allocabl e ODA in 2002-05 but fell to 7% in 2007.  
Table V.1 
Aid-for-trade support, 2002-08 
(US$ million at 2008 current prices) 
Sector 2002 2003 2004 2005 2006 2007 2008 
Transport & storage, total 124.23 17.55 0.18 1.05 2.32 10.13 416.71 
Communications, total 0.15 0.59 0.67 2.21 2.02 7.36 5.29 
Energy, total 13.28 2.53 0.62 173.79 10.68 99.08 6.18 
Banking & financial services , total 3.31 25.74 19.85 0.28 39.63 24.15 37.83 
Business & other services, total 22.92 0.24 23.77 3.73 9.37 0.21 23.13 
Agriculture, total 5.88 77.72 0.7 15.75 27.26 31.71 233.05 
Forestry, total 0.13 0.08 .. .. .. 0.06 1.71 
Fishing, total 0.04 .. 0.02 0.08 .. 0.06 0.02 
Industry, total 1.21 5.49 65.23 42.45 63.04 11.44 2.6 
Mineral resources & mining, total .. 0.03 86.19 0.67 1.19 0.08 0.93 
Trade policies & regulations, total 1.30 0.59 1.30 3.13 17.06 0.94 1.39 
Tourism .. .. 0.01 .. .. .. .. 
Total 172.45 130.56 198.54 242.14 172.57 278.22 728.74 
.. Not available. 
Source:  OECD, Creditor Reporting System Database. 
18. Support has been concentrated in economic infr astructure and in building productive capacity 
in transport, energy, and agriculture.  More than 80% of the aid for trade in 2007 was directed into 
transport, energy, and agriculture, and in 2008 almost  90% was directed into transport and agriculture.  
19. The top eight aid for trade donors for 2007-08 were the World Bank, the United States, the 
United Kingdom, the Netherlands, Austria, Denmark,  the EU, and the African Development Bank.  
The four main donors, the World Bank, USAID, DFID and AfDB, which account for over 80% of annual development assistance to Ni geria, agreed on a joint single country partnership strategy for 
2010-13 in order to have a greater impact. WT/TPR/S/247/Rev.1 Trade Policy Review 
Page 80 
  
 20. World Bank support has focused on infrast ructure and human development and it has 
co-financed projects with the AfDB in the transpor t sector and with the DFID in the energy sector.8  
As of June 2009, the World Bank, through the International Development Association (IDA), 
provided US$99 million in grants to Nigeria thr ough trust funds to support the promotion of 
infrastructure and other sectors related to human development. 
21. DFID is the donor coordinator on trade policy issues in Nigeria and has been active in 
supporting the work of the Trade Facilitation Task Fo rce including the elaboration of a short, medium 
and long-term Action Plan.  However, a large part of  DFID's support to Nigeria has been in the area of 
the human development, with most of the funds allocated to improve health and HIV/AIDS, and 
education. 
22. The EU has also provided support for the work of the Trade Facilitation Task Force through 
funding for short-term action plans such as sen sitization and public awareness events in ports, 
borders, and transit corridors. However, EU su pport has been mainly through the European 
Investment Bank and the Central Bank of Nigeria, with  the provision of long-term loans and equity to 
fund small and medium-term investments in industry,  agri-industry, mining, tourism, and related 
services.  
23. USAID assistance to Nigeria in the area of tr ade capacity building has focused mainly on 
trade facilitation (transit corridor support, incl uding time-release studies), customs operation and 
administration (including the development of a ri sk management programme), the development of 
new customs legislation, information technologies, export promotion, and business services and 
training. The adoption of modern customs legislation incorporating WTO disciplines and Revised 
Kyoto Convention best practices has been given a high priority by the Ministry of Finance, the 
Nigeria Customs Service, and the Preside ntial Task Force for Customs Reform. 
24. The African Development Bank (AfDB) support to Nigeria has focused on infrastructure 
development. For example, in 2008 the AfDB appr oved the financing of US$33 million for a transport 
facilitation project (the Nigeria-Cameroun highway ), and US$100 million was committed in 2009 to 
finance the Economic and Power Sector Reform Programme.  In 2010, the AfDB is planning to 
provide financing (US$18 million) for a Capacity Bu ilding Project for Public-Private Partnership in 
Infrastructure.9 
25. Nigeria has been active in requesting technical assistance from the WTO.  Over the last three 
years, it has benefited from four national techni cal-assistance activities, covering agriculture, SPS, 
TBT, customs valuation, and rules of origin.  
26. At the regional level, Nigeria has participat ed in more than 20 training seminars and 
workshops organized by the WTO.  The subjects c overed included:  agriculture, dispute settlement, 
non-agricultural market access, government procurem ent, SPS, TBT, WTO rules on regional trade 
agreements, trade remedies, and trade and developm ent.  Several Nigerian officials have also 
participated in specialized and thematic Geneva-b ased training activities, including the Specialized 
Course on TBT, trade and environment, SPS, agriculture, dispute settlement, government 
procurement, NAMA, services, regional trade, trade and development, and TRIPS.  A number of 
                                                      
8 In May 2010, the IDA lending portfolio in Nigeria consisted of 23 active projects with total 
commitments of US$3.56 billion in various sectors including roads, energy, education, health, social protection, private-sector development, and rural development. Infrastructure and human development comprise almost 
two-thirds of the lending portfolio. 
9 African Development Bank (2010). Nigeria WT/TPR/S/247/Rev.1 
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 Nigerian officials have completed several inter active on-line training courses offered by the WTO on 
various topics.  In addition, two officers, from th e Federal Ministry of Commerce and Industry, have 
benefited from the ten-month trainee/internship prog ramme at the WTO Secretariat, while a third is 
currently attending the programme.  
27. Nigeria is benefiting from two WTO Standard s and Trade Development Facility (STDF) 
projects.  The first project is on SPS capacity build ing for private and public-sector organizations in 
the area of food exports of sesame seed and shea butter. The project started in October 2010 and is 
being implemented by the Nigeria Export Promotion Council with supervision from the International 
Trade Centre (ITC).  The total cost of the proj ect is US$520,040, of which grant funds from the 
WTO-STDF account for 70% (US$339,240);  the Federal Government of Nigeria is responsible for 
the remaining 30%. 
28. The second STDF project is regional strategy  on SPS capacity building to mitigate the 
harmful effect of pesticides residues in cocoa and to maintain market access. This project, which 
covers Cameroun, Cote d'Ivoire, Ghana, Nigeria, and Togo, will start in 2011 and will be managed at 
the international level by the International Cocoa Organisation and implemente d at the national level 
by the Cocoa Association of Nigeria.  The total bu dget for the project is approximately US$5 million;  
the contribution from the STDF is US$600,000 and the remainder will be provided mainly by the 
Agricultural Commodity Programme of the African Caribbean and Pacific Group of States. Nigeria WT/TPR/S/247/Rev.1 
 Page 83 
 
 
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